Fluctuations of Total Revenues and Expenditures in the Consolidated Budget during 2009

Budget is a financial plan of all revenues and expenditures which are presumed to be executed within a period of one year. As a compass it helps to orientate and to organise the operations of each government unit responsible for accomplishing every objective set. As plan, during its preparation process budget is based on forecasts and that is a reason why it changes during the year making the initial budget different from the Actual Budget. However, a good and a careful forecast and an optimistic one allow very small fluctuations (variances). 

In the year 2009 the Initial Budget revised twice: (i) Revised Budget and (ii) Normative Act. The main difference arose from the forecast made for the economic growth, which was very optimistic considering global crisis. Thus, the GDP estimated at the level of 1.180.000 million ALL in the initial budget reaching the level of 1.176.349 million ALL in the Revised Budget (RB). Based on the performance of macroeconomic and fiscal indicators for the period January to July, as long as the macroeconomic plan changed due to revenues from privatization these changes were reflected even in the fiscal indicators of Consolidated Budget.

During the year revenues were adjusted continuously (specifically they have being reduced). In the Revised Budget revenues decreased by 2.6% while in the Normative Act (AN) they decreased further by 2%. Though, the revisions made the actual execution was at 6.7% lower than forecasted in Normative Act (or 89% of the initial forecast)

^{Source: Ministry of Finance
Comments and Analysis: Open Data Albania (ODA)}

At a time when revenues decrease, expenditures followed the opposite trend. In the Revised Budget and the Normative Act, they increased by 12 billion ALL, or 4.18%, twice as the rate of reduction of revenues.

This is explained by the fact that a part of the revenues from privatizations were mostly used to increase capital expenditures. Despite optimistic forecasts, even actual expenditures resulted lower than the Initial Budget. Expenditures were 5.4% lower than the Normative Act and 98.7% of the Initial Budget.

^{Source: Ministry of Finance
Comments and Analysis: Open Data Albania (ODA)}

All the information is presented in the table below:

^{Source: Ministry of Finance
Comments and Analysis: Open Data Albania (ODA)}